Zach Pandl, the Head of Grayscale Research, is reassessing the Bitcoin treasury of the Strategy. He believes that a substantial BTC sale might address investor concerns more effectively than merely increasing STRC dividends.
Summary
- Pandl suggests that a notable Bitcoin sale could help alleviate worries about Strategy’s cash obligations and dividend payments.
- With STRC priced under $100, there is growing pressure on Strategy’s preferred stock arrangement and funding approaches.
- Insights from Crypto.news link Strategy’s minor BTC sale to broader worries about leverage and liquidity risks.
Pandl noted that a 50 basis point increase in the STRC dividend next week would result in around $100 million in obligations over the following two years. However, he believes this approach “would likely not restore market confidence” as it doesn’t resolve concerns about future cash requirements.
He argued that offloading more than $3 billion in BTC might prove to be a more effective strategy. He claims that such a sale could nearly cover all cash obligations in the next two years and provide a clearer picture of how Strategy plans to handle its preferred stock costs.
Strategy, previously known as MicroStrategy, remains the largest corporate Bitcoin holder. The company has built its market presence on the basis of acquiring and holding BTC, while using equity, debt, and preferred shares to fund this strategy.
STRC Pressures the Treasury Model
The ongoing debate concerns STRC, Strategy’s variable-rate preferred stock. This asset was intended to trade near the $100 mark, currently offering an annual dividend of 11.5%. However, STRC has encountered downward trading pressure during recent market changes.
As reported earlier by Crypto.news, Strategy sold 32 BTC for about $2.5 million between May 26 and May 31. Though this sale was minor in relation to its Bitcoin treasury, it drew attention as the first reported BTC sale since December 2022.
This sale also transformed investor perceptions regarding the company’s funding model. Historically, Strategy was known as a persistent Bitcoin buyer. Even a small sale has raised doubts about whether the firm might need to liquidate more BTC if costs associated with preferred stock continue to rise.
Crypto.news also noted that STRC fell to as low as $82.50, with its effective yield approaching 13.2%. A higher yield generally suggests that investors are seeking greater returns to hold the stock.
Cash Runway is the Essential Query
CryptoQuant has estimated that Strategy’s annual dividend obligations tied to STRC have reached around $1.2 billion. They also believed that dividend coverage has shrunk to approximately 14 months as cash reserves have decreased throughout 2026.
These numbers help illuminate why Pandl’s proposed $3 billion sale has attracted interest. Executing a BTC sale could generate cash before pressures mount and show that Strategy can meet fixed obligations without solely depending on new share offerings or a rise in Bitcoin prices.
Recent updates indicated that Strategy subsequently acquired 520 BTC for about $34.9 million, raising total holdings to 847,363 BTC. The company also boosted its cash reserves by around $300 million, demonstrating that it continues to utilize capital markets to sustain both Bitcoin holdings and dividend commitments.
For investors, the next focal point will be STRC’s price in relation to the $100 benchmark. Should the preferred stock remain below this level, Strategy may face additional pressure to adjust payouts, secure capital, or strategically plan Bitcoin sales.
